European stocks rose in early trade on Wednesday, trimming some of the previous session's sharp losses after a pullback in oil and reassuring comments from the Fed chairman sparked a relief rally in equities worldwide.

Falling sales in a weak home market have left British firms facing their worst cashflow situation since records began in 1992, a survey from the British Chamber of Commerce showed on Tuesday.

Fresh concern about banks' financing hit European shares on Tuesday, although a drop in the oil price and an investor sweep into safe-havens like drugmakers and telecoms helped stem the slide in the broader market.

European stocks rose on Monday, driven by utility shares as merger speculation boosted Iberdrola, and by a drop in the price of crude oil.

The European Commission opened an in-depth investigation on Friday into BHP Billiton's $170 billion unsolicited bid for rival miner Rio Tinto, with prices of iron ore already soaring.

J.D. Power Automotive Forecasting on Friday reduced its forecast for west European car sales in 2008 and 2009 and now expects falls of 4 percent and 1.3 percent respectively.

Goldman Sachs said the European banks sector needs to raise about 60 billion to 90 billion euros, or withhold one year of dividends, to reach an aggregate Tier I ratio of 9 percent -- a level achieved by European banks that have recapitalized recently.

European stocks ended 1.2 percent lower on Friday, reversing the previous session's tentative recovery as banks resumed their decline, hit by a negative note from Goldman Sachs on the sector.

European shares rose on Thursday in their most volatile day of trade in over three months after a flurry of mixed U.S. data and the European Central Bank's surprise shift in its stance towards monetary policy.

A petition to halt interest rate hikes in the euro zone notwithstanding, European Central Bank President Jean-Claude Trichet will in all likelihood boost interest rates when the policy makers meet Thursday.

This is a timeline of the European Central Bank's rate decisions from 2007 to date.

The world's biggest central banks are pulling in opposite directions and it seems their efforts are only contributing to one thing: a weaker dollar.  Vote for your preferred central banker.

European stocks ended at intraday lows on Wednesday following a sharp drop in coal prices which weighed heavily on mining stocks, while a solid recovery amid banks placed a cap on losses.

U.S. Treasury Secretary Henry Paulson said on Wednesday that high oil prices, further home price declines and capital markets turmoil will prolong the American economy's slowdown.

U.S. Treasury Secretary Henry Paulson said on Tuesday that discussions with European Central Bank chief Jean-Claude Trichet about inflation led quickly to food and oil prices, and he reiterated his respect for central bank monetary policy decisions.